Stamp Duty tax has been abolished for properties up to the value of £500,000 – that means you pay absolutely nothing when buying a property at or under £500,000.
The simple table below shows what Stamp Duty Land Tax (SDLT) you’ll have to pay on various purchase prices until 31st March 2021
The Stamp Duty holiday is only a temporary measure to help boost the economy and will be removed on 31st March 2021. It came into immediate effect after being announced on 8th July.
What if I am already buying a property?
As long as you haven’t completed on the purchase you will qualify for the Stamp Duty holiday. If you completed your purchase before 8th July, you are liable for the full stamp duty payment.
Depending on the value of the home you’re buying, you could save up to £15,000! The table below shows how much tax you’ll be liable for under the new stamp duty rules.
This table illustrates how much saving you could make as a buyer, thanks to the Stamp Duty Holiday.
Stamp duty rate
|Up to £500,000||0%|
|The next £425,000
(the portion from £500,001 to £925,000)
|The next £575,000
(the portion from £925,001 to £1.5m)
|The remaining amount
(the portion above £1.5m)
The removal of Stamp Duty to the value of £500,000 benefits everyone. The news is undoubtedly going to flood the market with buyers, which in turn will naturally start pushing property prices up.
It’s great news for your onward purchase too. Regardless if you’re moving up or down in size, the savings you make on the land tax are likely to far outweigh the slightly increased prices we’re expecting.
We’re already seeing an influx in applicant registrations through Rightmove and prospect.co.uk. Rightmove reported that within an hour of the announcement yesterday they had an increase of traffic by 22%, resulting in their busiest day ever!
With such a surge of buyer interest and people having more money to put towards a house, we’re already seeing the signs of even more properties coming to the market in the coming months, with sellers taking advantage of buyer confidence, along with more people actively looking to move.
If you’re considering making the move and would like to find out how much you could sell your property for, arrange your free no obligation property valuation today, using the form below.
If you have any questions about the change in Stamp Duty, or about the ever-evolving property market, please don’t hesitate to contact us, with Local estate agents across Berkshire, Hampshire and Surrey